[ECON 1100] - Midterm Exam Guide - Comprehensive Notes for the exam (72 pages long!)

• School: University of Guelph
• Department: Economics
• Course: ECON 1100
• Professor: Pat Martin

Document Summary

Food, shelter, household operations, furnishings and equipment, clothing and footwear. Transportation health & personal care, recreation, education and reading, alcoholic beverages and tobacco products. Overestimate the inflation rate wary of substitution bias update the basket of goods. Measure of the change in the overall economy. Menu costs: when firms change their prices. Firms don"t know if higher prices are the result of demand or inflation (or both) resulting in firm making production mistakes. If inflation is less than anticipated, lenders gain & borrowers lose. If inflation is more than anticipated, lenders lose & borrowers gain. Y 0 gdp/capita in year 0 x 100 = percentage growth rate. Growth rate = . 667 x 100 = 66. 7% Calculation good to know but there are easier ways. ) 1/t - 1 ] x 100 = % annual growth rate. Number of years for a variable to double. Variation from the full employment level of output.